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1832 Bank Recharter Bill
A bill was by Henry Clay and Daniel Webster to renew the national bank. It was passed in Congress but was vetoed by President Andrew. He stated that the bank had too much power and that it was unconstitutional. -
Jackson's Veto's
President Jackson vetoed the bill for the recharter of the national bank although it was passed in both houses of Congress. His reasoning was that the bank was owned privately and it gave monopoly power to the few elite investors. He also declared that it was unconstitutional even though the Supreme Court had ruled that it was constitutional. -
Election of 1832
The candidates was Jackson and Henry Clay. Jackson won with a landslide in the electoral collage. The major debate was the national bank. Clay supported it while Jackson opposed it. -
Biddle Response
Nicolas Biddle was the president of the national bank. He wanted to recharter the bank so he spoke against Jackson. He tried to gained support for the bank by speaking out against Jackson. He claimed that the President was abusing his power by vetoing a bill that Congress passed as if he were above the legislative branch. -
Speculative Boom
People falsely thought the economy was getting better and that there was a lot of money, so they spent a lot. This led to a financial crisis. -
Jackson Removes Federal Deposits
President Jackson distributed national money to state banks. He also increased funding for government. His plan was to bankrupt the national government and it worked. The bank collapsed. -
Jackson's Pet Banks
Jackson deposited federal money into state banks called "pet" banks. This was his attempt to eliminate the national bank and in the process, he harmed the economy. -
Specie Circular
The idea was created by Jackson but it was enforced by the next President, Van Buren. This decree made it so that land could only be bought by gold and silver. This helped decrease the speculative boom. -
Crash of 1837
This was a big economic recession caused by inflation and speculative boom. There was a huge decrease in profits and everything became cheap. This lasted till the 1840s. This created a need for a national bank.
